Stability and trust a common goal: phase II of Western Balkans project successfully completed

The fifteenth of September 2025 marked the end of phase II of the EU-funded project entitled “Programme for Strengthening the Central Bank Capacities in the Western Balkans with a View to the Integration to the European System of Central Banks”. The Bundesbank, which played a leading role in this project alongside 19 central banks from the European System of Central Banks (ESCB), the European Central Bank (ECB) and the European Commission, can look back on three years of intense cooperation. 

Bundesbank board member Burkhard Balz used the official closing event in Frankfurt am Main in early September to pay tribute to the project’s achievements and the close cooperation with central banks from the region. “Close collaboration between the ESCB, the ECB, the European Commission and our partners in the Western Balkans is not only advancing convergence with European and global standards, but also nurturing a culture of trust and openness,” Mr Balz stressed in his speech. 

A strong foundation for the future 

The programme, which received €3 million in funding from the European Commission, aimed to strengthen the institutional capacities of central banks and supervisory authorities in the Western Balkans. Key topics included governance, risk management, operational resilience, banking supervision, anti-money laundering, financial stability, payment systems, statistics and digitalisation. 

The results speak for themselves: The beneficiary institutions – including the central banks of Albania, North Macedonia, Montenegro, Serbia and Kosovo as well as the central bank and banking supervisory authorities of Bosnia and Herzegovina – were able to improve their analytical and policy tools and integrate European standards into their national practices. 

Stressing the importance of the programme, Vasyl Zubaka, Team Leader for Public Administration Reform in the European Commission’s Directorate General for Enlargement and the Eastern Neighbourhood, said: “Strong and independent central banks are key pillars of stability, trust and sustainable growth in the region. It benefits central banks in the Western Balkans to prepare for their integration into the ESCB.” 

Phase III: Looking ahead 

The successful completion of phase II doesn’t mean the work has come to an end, though. A follow-up project is being lined up and could kick off in February 2026. Phase III would focus on further convergence with European standards, safeguarding central bank independence and tackling fresh challenges such as digitalisation and geopolitical tensions. 

By running this project, the Bundesbank and its partners have not only strengthened economic governance in the Western Balkans, but also laid strong foundations for a trusting cooperation. Continuing the programme promises to build on past achievements and help the region progress further on its journey towards to the European System of Central Banks.